Opens in a new tab

How Uncle Sam is spending our taxes in FY 2018-2019

April 16, 2019

Struggle for money_tax refund_Fight-Money-855x411

Feeling pretty good today, are you? You got your taxes done and to the Internal Revenue Service on Tax Day.

Now you can shift from complaining about doing your taxes to complaining about how they are spent.

Here, direct from the U.S. Treasury is a graphic look at where our tax dollars went in fiscal year 2018, which ended Sept. 30, 2018.

US federal spending through FY2018_US Treasury data

Source: U.S. Treasury final monthly statement for fiscal year 2018
Click graph for a larger image

In addition to this graphic, the 36-page statement includes details on Uncle Sam's expenditures, as well as the scoop on the $779 billion federal deficit.

2019's accounts: OK, that was last fiscal year. What about the current one?

Brian Riedl, senior fellow at the Manhattan Institute, a conservative nonprofit based in, where else, New York City, takes a more personal crack at those figures in an article for Economics 21.

"This year, Washington will spend a staggering $35,148 per household," writes Riedl.

His calculations show that the per household amounts this fiscal year will go toward:

Based on national averages, the more than $35,000 per household in federal spending for 2019 includes:

  • $13,178 on Social Security and Medicare,
  • $6,483 on anti-poverty programs,
  • Uncle Sam hat with money in it$5,312 on defense,
  • $3,054 on interest on the national debt,
  • $1,556 on veterans' benefits,
  • $1,154 on federal employee retirement benefits,
  • $876 on education,
  • $557 on justice administration,
  • $533 on health research and regulation,
  • $493 on highways and mass transit,
  • $422 on international affairs, and
  • $1,530 on all other federal programs.

Check out Riedl's piece for more on each of these federal expenditure areas.

Not enough taxes: But wait, there's more. And it's not good.

That per household spending by Uncle Sam isn't being covered by taxes.

The federal government this fiscal year is only collecting $26,677 per household in taxes, which comes up $8,471 short per household when it comes to offsetting the more than $35 grand spent on each household.

That, of course, is going to add to the national debt. Riedl's figures say it will come to $177,000 per household.

Finally, the worse news.

As you've likely figured out yourself by now, Riedl notes that, "Unless spending is reined in, tax increases must eventually result."

Hmmm. Maybe our tax bills we settled up this week weren't so bad after all.

You also might find these items of interest:

Advertisements

 





 

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
confused office worker
8 workplace benefits questions to ask this enrollment season

October 26, 2026

Millions of U.S. workers are now deciding what workplace benefits, some of which also offer…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment